State & Local
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June 18, 2024
Missouri Atty's Departure Dooms 2 Sales Tax Protests
The Missouri Court of Appeals denied two businesses' attempts to revive their sales tax protests Tuesday, saying the state Administrative Hearing Commission correctly dismissed the cases for failure to file status reports after the companies' attorney didn't provide notice that she had changed firms.
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June 18, 2024
Ariz. Developer Stuck With $467K Bill For City's Builder Tax
An Arizona developer who built 22 homes qualifies as an "owner-builder" for purposes of Phoenix's speculative builder tax and is liable for $467,000 in tax, interest and penalties, the state's tax court said.
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June 18, 2024
Va. General Revenue Through May Beats Last Year By $1.48B
Virginia general revenue collection from July through May was $1.48 billion higher than in the same period last fiscal year, according to the state Department of Accounts.
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June 18, 2024
Short-Term Rental Laws And The Litigation They've Sparked
Short-term rentals are a contentious topic in the U.S., disrupting the hospitality industry and sometimes the neighborhoods where they’re located. Here, Law360 Real Estate Authority rounds up the state and local policies involving short-term rentals and the ongoing cases challenging them.
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June 17, 2024
Kansas Pols Agree On Tax Cuts Ahead Of Special Session
Kansas would reduce its income tax brackets to two and exempt Social Security income from tax under a compromise proposal reached between state House and Senate Republican leaders and Gov. Laura Kelly, announced during a joint committee meeting Monday.
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June 17, 2024
Pa. House Panel OKs Sales Of Net Losses, R&D Tax Credits
Pennsylvania would create a program to allow emerging biotechnology and technology businesses to sell their net operating losses and unused research and development tax credits to other companies under a bill advanced by the state House of Representatives' Finance Committee.
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June 17, 2024
Pa. General Revenue Collection Through May Up $610M
Pennsylvania's general revenue collection from July through May was $610 million ahead of last fiscal year's total for the same period, according to the state Department of Revenue.
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June 17, 2024
Calif. General Revenues Up $2.4B Over Revised Estimates
California's total receipts from July through May were $2.4 billion more than projected in revised estimates, according to the state Comptroller's Office.
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June 17, 2024
NJ Revenue Through May Down $182M From Last Fiscal Year
New Jersey collected $182 million less in general revenue from July through May than it did in the same part of last fiscal year, according to a report by the state's Department of the Treasury.
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June 17, 2024
RI Allows Unrestricted Property Tax Rates In Providence
Rhode Island is authorizing the city of Providence to adopt a classification system that allows unrestricted tax rates for residential, commercial, industrial and tangible personal property under bills that became law without the governor's signature.
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June 17, 2024
Mich. Justice Wants Tax-Break Filing Options After Mail Fiasco
A Michigan Supreme Court justice called on the state Legislature to give taxpayers more flexibility in claiming property tax exemptions after a company lost out on an exemption because the U.S. Postal Service never delivered its paperwork.
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June 17, 2024
Ark. Bills Seek Income Tax Cuts, Homestead Credit Expansion
Arkansas would reduce its income tax rates and increase its homestead property tax credit under bills introduced in both the state House of Representatives and Senate for a special legislative session at Republican Gov. Sarah Huckabee Sanders' request.
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June 17, 2024
NJ Tax Court Upholds Town's $1M Valuation Of Residence
The New Jersey Tax Court affirmed the township of Montclair's roughly $1 million valuation of a single-family residence, saying the homeowners failed to account for differences in other properties that they argued warranted cutting the assessment.
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June 17, 2024
NJ Power Broker, Firm CEO Brother Accused Of Racketeering
Powerful New Jersey businessman George E. Norcross III and his brother who is the chief executive officer of law firm Parker McCay have been criminally charged alongside others in a scheme to acquire waterfront property in the distressed city of Camden using threats of economic and reputational harm.
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June 14, 2024
The Tax Angle: More GOP TCJA Teams, Nonprofit Hospitals
From a look at efforts by the Republicans on the Senate Finance Committee to prepare for next year's expiration of the 2017 tax overhaul law to a new call for nonprofit hospitals to provide more charity care, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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June 14, 2024
IRS Says Ariz. Lacks Standing To Fight Taxation Of Rebates
Arizona did not have standing to lodge its claim that its 2023 income tax rebates should be exempt from federal tax, the Internal Revenue Service told a federal court, arguing the taxes paid by Arizonans did not amount to harm to the state itself.
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June 14, 2024
Mich. Bill Would Clarify Tax On Delivery Network Sales
Michigan would clarify that vendors selling through an online marketplace are liable for collecting and remitting sales tax and that delivery networks can deduct amounts paid to sellers from their tax liability under a bill introduced in the state Senate.
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June 14, 2024
Conn. Panel Backs Woman's Exemption From Bank Execution
A woman is entitled to an exemption from a financial institution execution served by an entity that collected taxes for a Connecticut city to satisfy a business's outstanding personal property tax assessment, the state's appellate court said in an opinion released Friday, affirming a trial court's ruling.
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June 14, 2024
Mich. Co.'s Former Head Liable For Biz's $229K Unpaid Taxes
The Michigan Tax Tribunal correctly assessed the former president and controller of a now-defunct automotive coating company with $229,000 in unpaid withholding taxes because he was in control of the company's financial operations, a state appeals court panel ruled.
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June 14, 2024
St. Louis Agrees To Return Tax Paid By Remote Workers
St. Louis has agreed to return income taxes paid by remote workers outside the city after a Missouri appeals court ruled it could not impose the tax, the parties said Friday.
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June 14, 2024
Ark. Gov. Calls Special Session To Cut Tax Rates
Arkansas Gov. Sarah Huckabee Sanders called a special session of the state Legislature to amend the state's top income tax rates and increase the homestead tax credit.
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June 14, 2024
Taxation With Representation: Kirkland, Arnold & Porter
In this week's Taxation with Representation, Noble Corp. PLC buys Diamond Offshore Drilling Inc., Cognizant buys Belcan, AlphaSense raises funding to buy Tegus, and Matador Resources Co. acquires a subsidiary of the EnCap Investments portfolio company Ameredev II Parent.
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June 13, 2024
Staffing Hurdles Could Slow Impact Of IRS Audit Boost
The Internal Revenue Service's intended ramping up of enforcement on wealthy people, large corporations and complex partnerships may not have a meaningful impact in the short term because of challenges in hiring and training people to do the work.
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June 13, 2024
NYC Dance Club's Tickets Freed From $2M In Sales Tax
A New York City dance club isn't on the hook for a $2 million state sales tax bill on its admission charges because its techno music shows qualified as a tax-exempt live music performance, a state administrative law judge determined Thursday.
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June 13, 2024
Mich. Bill Seeks Income Tax Credit For Home Down Payments
Michigan would create an income tax credit for homebuyers who purchase a single-family residence that would equal a portion of the down payment amount as part of a bill introduced in the state House of Representatives.
Expert Analysis
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Permanence And Other Elusive Notions: SALT In Review
From a Michigan income tax that may or may not be permanent to a victory in court for online travel companies, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Newman Suspension Shows Need For Judicial Reform
The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.
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How And Why Your Firm Should Implement Fixed-Fee Billing
Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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How Law Firms Can Use Account-Based Marketing Strategies
Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.
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Strategic Succession Planning At Law Firms Is Crucial
Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.
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Potential Calamities, Greatly Exaggerated: SALT In Review
From fears of judicial upheaval to a tax break for space travel, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Maximizing Law Firm Profitability In Uncertain Times
As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.
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Preparing Your Legal Department For Pillar 2 Compliance
Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.
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What Large Language Models Mean For Document Review
Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.
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Participating In Living History Makes Me A Better Lawyer
My role as a baron in a living history group, and my work as volunteer corporate counsel for a book series fan association, has provided me several opportunities to practice in unexpected areas of law — opening doors to experiences that have nurtured invaluable personal and professional skills, says Matthew Parker at the Nebraska Department of Health and Human Services.
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Another Ark. Tax Cut And Chicago Transit: SALT In Review
From yet another income tax cut in Arkansas to proposed extra funding for Chicago transit, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.